Ahmanson Gets Backing for Bid

H.F. Ahmanson & Co. said Wednesday that its efforts to seek support from shareholders of Great Western Financial Corp. for its $6-billion hostile takeover bid received a boost from an impartial third party.

Institutional Shareholder Services, a company that analyzes proxy materials for 150 institutional investors, said Great Western shareholders should support Ahmanson’s nonbinding resolutions that demand the Great Western board consider its offer, move up its shareholder meeting to April and seek shareholder approval for changes to company bylaws.

“They ought to sit down and negotiate. If the numbers don’t look good, at least they considered the offer,” said Peter Gleason, an Institutional Shareholder Services analyst who studied the proposals.

Irwindale-based Ahmanson, parent of Home Savings of America, the nation’s largest thrift, raised its offer for GW to $6.01 billion in stock, worth $43.65 a share, last month. It initially offered $5.26 billion in February.

Chatsworth-based Great Western, which refused to meet with Ahmanson, agreed on March 6 to be acquired instead by Washington Mutual Inc. of Seattle for $5.85 billion in stock, or $42.53 a share.

Gleason said investors shouldn’t support a proposal that would force Great Western to seek shareholder approval before offering break-up fees to suitors.

“We vigorously disagree with ISS’ recommendation,” said Great Western, which is asking its shareholders through its own solicitation to block the Ahmanson proposals. Shareholders of Great Western and Washington Mutual are scheduled to meet to consider their takeover agreement in June.

Ahmanson shares fell 62.5 cents to close at $36.375 and Great Western shares fell 87.5 cents to close at $40.625 on the NYSE.